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Indian ETFs Fall on Widespread Corporate Reform; Plunging Rupee

  +Follow August 16, 2013 4:13PM
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Investors in the emerging market of India were rocked Friday, as the country plans to concomitantly rework their outdated 57-year-old corporate legislative laws and address a rapidly devaluing currency. 

India has long been plagued by corruption. Kickbacks, gift and outright fraud are commonplace, as unscrupulous players take advantage of a financial system that has failed to keep pace with an increasingly complex global economy.

In 2009, the country was rocked by a massive fraud case involving the company Satyram Computer Services. The chairman confessed to overstating company assets and earnings by over $1 billion. The scandal, often called "India's Enron," made it clear the country lacked a proper oversight body and laws sophisticated enough to deal with modern finance.

The country is simultaneously scrambling to also stabilize the rupee, which is the worst performing emerging market currency in comparison to the dollar. The Reserve Bank of India is taking action and imposing controls to increase overseas direct investments, as the diminishing value of the country’s currency has made it more difficult for Indian corporations to buy assets outside the country.

India has also had to deal with inflation and a widening current account deficit. The corporate reforms and worsening economy coupled to spook investors and trigger an ETF sell-off.

Indian ETFs across the board retreated on Aug. 16. iPath MSCI India Index (INDA) dropped 4.84 percent to hit $21.41 a share. PowerShares India ($PIN) dropped 4.64 percent to hit $15.62 a share. WisdomTree India Earnings ($EPI) fell 4.53 percent to hit $14.76 a share.

The biggest loser on the day was Direxion Daily India Bull 3X Shares ($INDL), which plummeted 12.89 percent to hit $10.72 a share amid eight times normal volume. 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for PIN
Steven Schoenfeld
28 Jan 15 16:05:00
$EPI, $PIN, $SCIF via @EricBalchunas: Mark Yusko loves India: “Modinomics is better than Abenomics.” #InsideETFs”
Orb☊Skewer
28 Jan 15 14:43:18
Truth about ecigs comes from those that have used them, daily, for years, and honest scientists, not liar politicians who only know $pin}
✈Smokey Bandit✈ #GT
28 Jan 15 12:06:38
My new sounds: Head $pin (Instrumental) (Snippet) https://t.co/8TXy9UGNBq on #SoundCloud
4-traders.com
27 Jan 15 23:01:06
#PANTHEON PARTICIPATIONS : Monthly Performance Update http://t.co/4F3A2hpAUI $PIN
Sudhir
27 Jan 15 22:43:26
I expect the Nifty to reach 9200 by the Budget.$EPI $PIN $INDY
Sudhir
27 Jan 15 22:33:35
RT @allstarcharts: don't tell anyone but I see a lot of relative strength in India $EPI $PIN $INDY @TDANSherrod @TDAJJKinahan
Kyle Bazzy
27 Jan 15 13:38:56
RT @allstarcharts: don't tell anyone but I see a lot of relative strength in India $EPI $PIN $INDY @TDANSherrod @TDAJJKinahan
teevee
27 Jan 15 11:48:51
"@allstarcharts: price action in India continues to be constructive doesn't it? Consolidating this breakout nicely so far $EPI $PIN $INDY"
J.C. Parets
27 Jan 15 11:31:52
don't tell anyone but I see a lot of relative strength in India $EPI $PIN $INDY @TDANSherrod @TDAJJKinahan
Sudhir
27 Jan 15 09:51:02
RT @allstarcharts: The price action in India continues to be constructive doesn't it? Consolidating this breakout nicely so far $EPI $PIN $…
J.C. Parets
27 Jan 15 09:12:40
The price action in India continues to be constructive doesn't it? Consolidating this breakout nicely so far $EPI $PIN $INDY
Julia Sun
26 Jan 15 18:53:38
$PIN - Cuz I ate an entire bag of Flamin' Funyuns 🔥😜🔥 (at @FitnessSF MidMarket in San Francisco, Calif) https://t.co/DSUQidpRwm
RW McElveen
26 Jan 15 15:26:41
RT @MarcedesLFndtn: An invitation to $pin the wheel, roll the dice or get royal flushes with us again this year. $ave the date #March7 http…
Marcedes Lewis Fndtn
26 Jan 15 15:00:34
An invitation to $pin the wheel, roll the dice or get royal flushes with us again this year. $ave the date #March7 http://t.co/ckYu37HIVk
Top Stocks
26 Jan 15 12:41:29
RT @allstarcharts: The Nifty 50 Hits All-time Highs http://t.co/KxT8lPD2HE $EPI $INDY $PIN $INFY
MarketSmith
26 Jan 15 12:41:28
RT @allstarcharts: The Nifty 50 Hits All-time Highs http://t.co/3UBptCbYwz $EPI $INDY $PIN $INFY
Zeno Trend
26 Jan 15 10:13:45
Opened positions last week in $PIN and $HEDJ. Scaled back winning positions in $KOLD $EUO $BUNT to keep risk below 50 bps.
Jason Dubbeldam
26 Jan 15 08:30:53
TOP 5 Int'l Markets Weekly: $FXI, $TUR, $PIN, $EWY. $EWG South Korea continues month-long uptrend & punches up into 4th, removing Belgium.
Robert Hap Sneddon
26 Jan 15 08:26:27
TOP 5 Int'l Markets Weekly: $FXI, $TUR, $PIN, $EWY. $EWG South Korea continues month-long uptrend & punches up into 4th, removing Belgium.
Seeking Alpha
26 Jan 15 06:00:53
Dumpwatch: Low Ruble Prices Bringing Russian Steel To India's Shores http://t.co/Rnaw1IQrix $EPI $INDY $PIN $INDL $INP $INXX $INDA
kyra
25 Jan 15 17:39:41
Me n Steph just made mad $pin@ch
Vincent Carr
25 Jan 15 12:17:09
The Room is $pin'N... *NO DRUG$* #Insomniac #TeamNoSleep
Xetsu
23 Jan 15 05:45:36
Various emerging markets waking up. ECB reigniting confidence. $IDX $GXG $PIN
				
				
  +Follow August 16, 2013 4:13PM
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